GOOD start to the year for South African salaries in 2025

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It’s been a good start to the year for South African salaries in 2025, with a marked increase reflected in January 2025’s stats. This is according to BankservAfrica’s Take-home Pay Index (BTPI), which tracks the average take-home pay of an estimated 4-million salary earners, reports Daily Investor.

That’s correct, despite many economic headwinds and uncertainty over the upcoming budget, South African salaries in 2025 have improved. And not by a small quotient either:

January 2025’s average take-home pay in South Africa was R18 098.
January 2024’s was just R15 670. That’s a R2 534 increase per month (16.5%).
And December 2024’s was R17 246, also reflecting a small increase.

SOUTH AFRICAN SALARIES IN 2025

Average take-home pay is improving to rates last seen in 2020. Image: File

Economists say it will be interesting, however, to see how South African salaries in 2025 react to what transpired in February. After mostly positive sentiment towards the economy under the new Government of National Unity (GNU), the Finance Minister and National Treasury’s postponed Budget Speech sent markets tumbling last month. Couple that with rapidly worsening US-SA relations, the threat of sanctions and immediate cuts in aid, and take-home pay could take a swing for the worse.

Nevertheless, economists also say they’ve seen a notable moderation in inflation in 2025. Three consecutive interest-rate cuts have provided much-needed relief, too. Moreover, South African salaries in 2025 have been buoyed by external factors like a reduction in load-shedding. In 2022/2023, salaries were unable to keep pace with inflation, but in 2025 they are. Better still, consumer inflation has stablised in 2025, from 5.3% to 3.0%, which means increased purchasing power for consumers.

WHAT DOES THE REST OF 2025 HOLD?

Therefore, BankservAfrica believes, if inflation remains well-contained in 2025 (forecast at 4.2%), South African salaries in 2025 could see a second consecutive annual improvement. Likewise, real GDP growth is forecast to increase by 1.7%in 2025, which is higher than 2024. Improvements in business should enable companies to offer higher salary increases in 2025. However, as mentioned, this is all contingent on a positive reception to the revised 2025 National Budget. Anything out of the ordinary has the potential to erode away the fragile recovery of South African salaries in 2025.